After a volatility breakout, here’s what we’re doing with Chevron (CVX). (October 13, 2012)
CVX
I’m Dan Fitzpatrick at Stock and Option Market Mentor on Saturday, October 13th. In this video I just want to look real quick at Chevron ( $CVX Chevron Corporation ), because this is a stock I think is not giving you a good entry here. We got a nice move to the upside here but that stock squeezed, volatility squeezed, traded in a tight range for quite awhile, now the stock is moving lower. A lot of folks say, “Oh, it dipped below the 50-day moving average for the first time so I want to go ahead and buy the stock because I think it’s going to move higher.” It very well may do that but look what happened on Friday, lower than average volume and the stock traded lower. Back on Wednesday, that was the big crush on massive volume, so even though we got a weak bounce on Thursday the bounce has not held at all and now Chevron ( $CVX Chevron Corporation ) continues to move lower. This is a stock that frankly I would get out of, I would actually look to short it on any kind of a move to the upside if it gives you any opportunity to get off a short into any strength, because after the kind of price action that I’ve seen over the last few days the path of least resistance is actually lower. Okay members, get over to the weekend update I’ve got some more to say about our shot across the bow concept and also our stocks that we’ve been following in the Sector Spotlight; so check that out and if you haven’t already, sign up at OptionMarketMentor.com, risk-free trial for $7.77 please do, I’ll see over there. Free Chart